Hadoop-as-a-Service Market Overview:

Hadoop-as-a-Service (HaaS) Market is expected to garner $16.1 Billion globally by 2020, registering a CAGR of 70.8% during the forecast period 2014 to 2020. Hadoop-as-a-Service (HaaS/HDaaS), is a novel term that defines virtual storage and analysis of data on the cloud. Also termed as hadoop in the cloud, Hadoop-as-a-Service has emerged as a replacement to on-premises hadoop. It comprises of data storage in the cloud and its analysis through hadoop without the need to install any infrastructure in the premises.

Hadoop-as-a-Service market has witnessed a tremendous growth in 2013 and has doubled from the Hadoop-as-a-Service (HaaS) market size in 2012. Hadoop-as-a-Service market is evolving and current users include SaaS providers, social media companies, and gaming companies. The technology is yet to enter into the mainstream commercial market. However, it is expected to witness a tremendous growth in the next 7 years, expanding its horizon into the end user industries of conventional hadoop.

Amazon Web Services (AWS) holds lions share in the market, holding nearly 90% of the global market. Amazon Elastic MapReduce (EMR) is the HaaS service by AWS. It provides hadoop based platform for data analysis with S3 as the storage system and EC2 as the compute system. Microsoft HDInsight, Cloudera CDH3, IBM Infoshpere BigInsights, EMC GreenPlum HD and Windows Azure HDInsight Service are the primary Hadoop-as-a-Service by global IT giants. Altiscale is another player in the market with a comparatively minimal share in the market; however, holds potential to compete with the existing companies. Altiscale and Quobole are the two managed or Pure Play Hadoop-as-a-Service providers. Contrary to AWS, they provide complete running and management of the hadoop jobs.

Global Hadoop-as-a-Service market is segmented into Pure Play and Run It Yourself based on deployment options available to the customers. Run IT Yourself (RIY) type of deployment is the most prominently used service in the current scenario. Further, the market is analyzed and estimated based on regions such as North America, Asia Pacific, Europe and LAMEA. North America is the leading region followed by Europe and Asia Pacific in the overall Hadoop-as-a-Service market.

SMEs are facing stiff competition in the market due to growing number of small and medium scale industries. To counteract this challenge, they need to manage and analyze big data solutions and derive actionable insights to come up with a customer-driven marketing strategy. Since HaaS solutions are one of the best measures that enable companies to perform analytics with low capital investment, SMEs across the globe are increasingly adopting HDaaS solutions. The intensity of this driver is expected to increase with time due to growing awareness among SMEs regarding market study in regard to consumer data analysis to get insights into consumer behavior and market trends.

Growing demand from SMEs

Internet and social media has been one among the largest sources of big data. Growing popularity of ecommerce websites and increasing consumer indulgence in social media and online discussions has created the need to mine data from online sources and analyze it to acquire business insights. SMEs are gaining awareness of the importance of understanding consumer orientations concerning products available in the market and buying criteria. Hadoop as a service offers the companies a platform to analyze raw data from various sources and come-up to valuable insights, and knowledge, paving way to taking profitable decisions. The demand for HaaS by SMEs would continue to grow during the forecast period with increasing number of such enterprises and rising awareness among the existing ones.

Flexibility and Agility for businesses

Flexibility in choosing the number of clusters, storage space, work-load, and hours of operation is an added benefit to HaaS users. This helps them choose a service best suited for them and pay for only what they need,as HaaS providers price based on storage and compute needs. The scalability features of the HAAS service is a cutting edge factor giving an upper hand to the HAAS providers over traditional hadoop. Quick access to the hadoop platform and instant operation brings agility in the service. Expectedly, companies will start offering more flexible hadoop solutions with new providers entering the market and rising consumer demand. Therefore, the intensity of this driver would touch its peak during 2014 to 2020.

Key Benefits:

Analysis of the Hadoop-as-a-Service market segmented into deployment types, end users and geography is expounded in the report

Identification of the various factors that are enhancing and restraining adoption of cloud based hadoop would help the market players in understanding the current market scenario and Hadoop-as-a-Service (HaaS) market share for key players

Qualitative as well as quantitative analysis of the current market scenario coupled with future estimations through 2014-2020 would help stakeholders take strategic, actionable and profitable decisions

Porters five forces model helps to understand the bargaining power of buyers and suppliers and threat of the new entrants

Identification and analysis of the captivating strategies adopted by key market players such as Amazon Web Services, Microsoft, IBM, EMC Corp., Altiscale and others is conducted, which would assist the stakeholders to gain competitive advantages

Hadoop-as-a-service Market Key Segments:

Hadoop-as-a-Service market is segmented based on deployment types, end users and geography

4.18.1 Top Factors Hadoop as a service market market
4.18.2 Top Investment Pockets
4.18.3 Top winning strategies

4.19 Porters five force analysis

4.19.1 Higher switching cost raises the power of suppliers
4.19.2 Differentiation in products lowers the buyer power
4.19.3 Significant brand loyalty decreases the rivalry
4.19.4 Threat of new entrants is high as location is not an issue
4.19.5 Threat of internal substitution is moderate and complete HaaS substitution is low

Request for Table of Content

Data scientists and Hadoop providers have yet to reach a consensus regarding the term Hadoop as a Service and what exactly it encompasses. Taking the phrase as-a-service into consideration, HaaS must refer to a service offered by a company wherein hadoop software can be utilized without having to install the infrastructure on the premises. Big data analysis is done through the hadoop platform in the cloud. The minimum requirement for a service to be considered HaaS is that it should provide a hadoop software platform where data can be fed and analyzed. Infrastructure-as-a-Service offerings that can be utilized by the user to install hadoop should not be considered a HaaS offering. AWS EMR is the most basic type of HaaS offered by companies. If a user employs the AWS EMR service; additional charges (other than the EMR) apply for storage and compute services with S3 and EC2. In such cases, the HaaS revenue generated by the company includes EMR cost, S3 cost and EC2 cost.

HaaS is a novel technology that is yet to enter the mainstream commercial market. HaaS is expected to penetrate the conventional hadoop user base in the coming years. Amazon Web Services is the market leader, holding nearly 90% share of the HaaS market. EMR is a HaaS offering by AWS. Other HaaS offerings include IBM Infosphere BigInsights, Windows Azure HDInsights, and EMC greenplem HD. Altiscale and Quobole are comparatively smaller companies but have come up with a managed hadoop as a service offering which eliminates the need for technical knowledge to run hadoop.

HaaS generated revenue of around $150 million in 2012. The revenue generated by HaaS has almost doubled from 2012 to 2013. The market is expected to retain its pace throughout 2020. Pure Play HaaS providers are expected to grow at a faster rate, especially in the Asia Pacific region. This is because growing awareness among SMEs in these countries ensures potential customers for HaaS due to its cost competitiveness and due to the growing need for data analytics to sustain in the intensely competitive SME market.